EU Approves Funding for Zero-Emission Tire Factory in Romania

The European Commission has granted approval for a €99.5 million state aid measure proposed by Romania to establish a groundbreaking zero carbon dioxide emission tire factory. This initiative aligns with the EU's strategic goals of job creation, regional development, and promoting a green economy. The factory, to be built in Oradea, Bihor County, is part of a broader effort to support sustainable industrial practices in regions eligible for EU regional aid. Romania's plan involves providing financial support to Nokian Tyres, which aims to construct the world's first tire factory with zero carbon emissions. The total investment for the project is estimated at around €650 million, with the factory expected to produce approximately 6 million tires annually. Margrethe Vestager, the European Commission's Vice-President for competition policy, emphasized the project's potential to enhance competitiveness and contribute to the green transition in the region. The establishment of this factory is projected to create around 500 direct jobs, along with additional indirect employment opportunities, thereby bolstering the local economy. The initiative reflects the EU's commitment to supporting economic development in disadvantaged areas while maintaining fair competition among member states. Overall, this state aid measure not only aims to foster sustainable industrial growth but also underscores the EU's dedication to environmental responsibility and regional equity in economic development.